NEPRA Imposes Fixed Charges on Electricity Consumers

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For residential customers, the National Electric Power Regulatory Authority (NEPRA) has set fixed charges that will take effect on July 1, 2024, ranging from Rs. 200 to Rs. 1,000 per month. 

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Currently, fixed prices comprise only 2 percent of income, and variable costs comprise 98% of the power cost structure. Fixed charges make up 72% of the whole cost structure. Implementing new fixed charges is a step towards NEPRA’s intention to alter this equilibrium. 

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The government intends to ask NEPRA to impose a uniform tariff for the fiscal year 2025. NEPRA has already decided to raise the base rate for FY25 by Rs. 5.72 per unit, from Rs. 29.78 per unit in FY24 to Rs. 35.50 per unit. 

With a revised price structure, the electricity industry is expected to attract more than Rs. 3.763 trillion in customer revenue in FY25. 

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Syed Sadat Hussain Shah

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